Parenting 101: 4 Money rules to raise millionaires

According to a recent Bankrate study, children who were raised with a strong financial education are significantly more likely to build healthy money habits and negotiate higher salaries as adults.

No wonder parents today aren’t willing to leave financial success up to chance. Gamblizard reports that Google searches for “how to teach kids about money” have skyrocketed 92% in the past month alone.

With Teach Children to Save Day coming up on April 27, personal finance strategist Jamie Wall has four essential money skills every parent should teach early.

Teach kids to negotiate early

Helping children learn to negotiate teaches them confidence and critical thinking. This skill doesn’t just help with salaries, it also builds resilience and self-advocacy across various life situations. Start small by encouraging your kids to explain their reasoning during decisions or budget trade-offs. Let them make their case for a new toy by suggesting ways to save for it or what they’d be willing to give up. Role-play common scenarios, like asking for a later bedtime or a larger allowance, so they get comfortable presenting their viewpoint and backing it up with logic.

Introduce investing concepts early

Investing might seem like an “adult” topic, but kids as young as 10 can grasp basic ideas like risk, growth, and diversification. Start simple: offer 1 toy now or 3 if they wait a week. It’s an easy way to introduce patience and the idea of long-term rewards. With older kids, try playing a stock market game or tracking shares of a brand they like to make investing fun and relatable. Encourage them to follow the performance of their chosen stocks over time and discuss how the value goes up and down. This hands-on approach teaches patience, the importance of long-term growth, and the power of small, consistent investments.

Encourage budgeting with allowances

Giving kids a regular allowance tied to specific responsibilities helps them learn to manage money hands-on. According to the AICPA, the average allowance is $30 per week, and children earn around $6.11 per hour for completing chores. That’s a real income they can learn to manage. Encourage them to split their money into categories: save, spend, and give. This introduces budgeting in a way that’s personal and meaningful, building a habit that can last into adulthood.

Encourage entrepreneurial ventures

Letting your child run a mini business, like selling handmade crafts, mowing lawns, or even creating digital content, can teach practical lessons about money, time, and value creation. In a national survey by Junior Achievement USA, 60% of teens said they would prefer to start their own business rather than work a traditional job. This shows a strong interest in entrepreneurship among youth, and early practice gives them a head start. They learn budgeting, setting prices, marketing, and even coping with failure — all within a safe, supportive environment.

– JC